Under generally accepted accounting principles, what is the proper financial statement presentation of deferred gross profit as of the end of the year resulting from instalment sales?*

1 point

Other comprehensive income in the Statement of Comprehensive Income

Unearned revenue in the Statement of Financial Position

Contra instalment receivable in the Statement of Financial Position

Profit or loss in the Statement of Comprehensive Income

Which corporate creditors were fully paid in this scenario?*

1 point

I and II only

I only

I, II and III only

I, II, III and IV

Under PFRS 15, costs incurred to fulfil a contract are recognized as an asset if and only if all of the following criteria are met, except*

1 point

The costs are expected to be recovered

The costs relate directly to a contract.

The costs are reasonably possible to provide future economic benefits to the entity and can be measured reliably.

The costs generate or enhance resources of the entity that will be used in satisfying performance obligations in the future.

Under PFRS 15, when shall the consignor recognize revenue from consignment sales arrangement?*

1 point

From the moment of collection by the consignee of the proceeds of the sale from final consumers

From the moment of remittance by the consignee to the consignor of the collection from final consumers

From the moment the consigner delivers the goods to the consignee

From the moment the consignee sells the goods to final consumers

PFRS 15, what is the proper measurement of revenue from contract with customers if the entity received a non-cash consideration?*

1 point

Fair value of the consideration received

Book value of the consideration received

Stand-alone selling price of the good or service promise in the contract.

Historical cost of the consideration received

At the date of partnership formation of ABC partnership, the amount credited to A's capital is less than the fair maker value of the property he contributed. Which of the following is the most valid reason?*

1 point

The property contributed by A is impaired.

Bonus has been given by partner A to the other partners.

Goodwill arising from partnership formation has been recognized.

The property contributed by A has been subjected to positive asset revaluation.

In every corporate liquidation, which of the following creditors will always fully recover their claims from a liquidating corporation?*

1 point

Fully secured creditors

Partially secured creditors

Unsecured creditors with priority

Unsecured creditors without priority

Under PFRS 15, what is the criteria before entity may recognize the incremental costs of obtaining a contract?*

1 point

If the customer violates the contract with the entity.

If the customer signs the contract with the entity.

If the entity receives the costs form the customer.

If the entity expects to recover those costs.

In what specific date will the balance of Construction in Progress computed under Percentage of Completion Method be always the same with the balance of Construction in Progress under Cost Recovery Method?*

1 point

IV only

III and IV only

II and III only

I, III and IV only

What is the reason for the understatement of the net income reported by the branch in its separate income statement?*

1 point

Overstatement of purchases for the year reported by the branch for goods coming from the home office.

Overstatement of cost of goods sold reported by the branch due to goods acquired from the home office.

Overstatement of beginning inventory of the branch due to goods acquired from home office

Overstatement of ending inventory of the branch due to goods acquired from home office.

When partner D retired, the partnership paid D an amount that was lower than the balance of his capital account. Which of the following statements is incorrect?*

1 point

The partnership assets were not affected.

the other partners' capital balances increased.

The number of capital accounts in the partnership chart of accounts decreased.

the partnership assets decreased as a result of D's retirement.

At the time of retirement of a partner, he receives an amount more than his capital balance before retirement. Which of the following statements is correct?*

1 point

If the assets of the partnership are not properly valued at the time of retirement, the capital balances of the remaining partners will decrease as a result of retirement.

All of the choices

If the assets of the partnership are not properly valued at the time of retirement, impairment loss of existing assets is recognized at the time of retirement.

If the assets of the partnership are properly valued at the time of retirement, the capital balances of the remaining partners will decrease as a result of retirement.

At the time of liquidation of general partnership, which of the following credits shall be settled first by the liquidating partner?*

1 point

Those liabilities of the partnership to third persons

Those advances made by the partners to the partnership

Those claims of the partners regarding their capital contribution

Those claims of the partners regarding their share in partnership profit

It refers to the term used when the total shareholders' equity has a negative balance.*

1 point

Insufficiency

Deficiency

Deficit

Surplus

Under IFRS 15, in which of the following instances shall an entity recognize revenue through satisfaction of performance obligation at a point in time instead of satisfaction of performance obligation over time?*

1 point

The customer simultaneously receives and consumes the benefits provided by the entity's performance as the entity performs

The entity has transferred the legal title, control and physical possession of the asset at a specific date.

The entity's performance creates or enhances an asset that the customer controls as the asset is created or enhanced.

The entity's performance does not create sset with an alternative use to the entity and the entity has an enforceable right to payment for performance completed to date.

What is the main reason for the difference between the branch's net income reported by the branch and the true branch's net income computed by the home office?*

1 point

Because of overstatement of branch's cost of sales for goods coming from home office

Because of overstatement of branch's cost of sales for goods coming from outsiders

Because of overstatement of total goods available for sale coming from home office

Because of overstatement of branch's ending inventory coming from home office

Under PFRS 15, which of the following factors indicates that the revenue from contracts with customers is recognized from the moment the entity satisfies the performance obligation at a point in time?*

1 point

When the entity's performance does not create sset with an alternative use to the entity and the entity has an enforceable right to payment for performance completed to date.

When the entity's performance creates or enhances an asset that the customer controls as the asset is created.

When the entity has transferred physical possession of the asset to the customer.

When the customer simultaneously receives and consumes all of the benefits provided by the entity as the entity performs

If the sale transaction provides for periodic instalments over an extended period of time and the collectability of the sales price cannot be reasonably estimated, what method of revenue recognition is the most appropriate?*

1 point

Cash basis

Accrual basis

Cost recovery method

Installment method

When it is probable that total contract costs will exceed total contract revenue, how shall long-term contractor account for the difference?*

1 point

The expected loss shall be recognized as an expense taking into account the percentage of completion as of the end of the period.

The expected loss shall be recognized as an expense immediately.

The expected loss shall be recognized as a profit taking into account the percentage of completion as of the end of the period.

The expected profit shall be recognized as a profit immediately

When the outcome of a construction contract cannot be estimated reliably, what accounting method shall be used by the long-term constructor for the recognition of construction revenue and construction cost?*

1 point

Instalment method

Cost recovery method

Percentage of completion method

Accrual basis